Tag: warns

France has seen repeated street and violent protests over the last two months – a scenario that could become more mainstream worldwide, the Edelman Trust Barometer Report warned Sunday. There is a growing feeling of distrust in governments and the media among the general population, according to the Edelman report. There is also a clear difference between mass population and the informed public, with the return to the largest-ever trust gap between these two, since 2017. This trust gap is partic

France has seen repeated street and violent protests over the last two months – a scenario that could become more mainstream worldwide, the Edelman Trust Barometer Report warned Sunday.

There is a growing feeling of distrust in governments and the media among the general population, according to the Edelman report.

It states that there has been a 3 percent increase between 2018 and 2019 in the level of distrust towards the government and the media. Overall, the general feeling of distrust has hit a record high this year from 2017.

There is also a clear difference between mass population and the informed public, with the return to the largest-ever trust gap between these two, since 2017. This trust gap is particularly evident in developed countries, including the U.K., Canada, France and the United States. But it is also growing in developing countries such as India and China.

“The last decade has seen a loss of faith in traditional authority figures and institutions,” said Richard Edelman, president and CEO of Edelman.

Stephen Kehoe, global chair, Reputation, said in a press release: “Divergent levels of confidence between the mass population and informed public about the future signal a continued underlying rot in the structure of society.”

“While not everyone is taking to the streets, the data shows why protests like the Gilet Jaunes in France, the women’s marches in India and walkouts by employees at some major tech companies could become more mainstream,” he added.

The “Gilet Jaunes” or “Yellow Vest” protests began in mid-November over higher fuel taxes, which were subsequently scrapped, and have since morphed into a broader demonstration against the government.

Food and Drug Administration Commissioner Scott Gottlieb warned on Friday that if the partial government shutdown persists, it will force the FDA to make “hard decisions” on preserving key functions of the agency. In prepared remarks for delivery at a hearing Friday, Gottlieb said the shutdown has represented one of the “most significant operational challenges” in the FDA’s recent history. “We’ve had to make hard decisions in the last month to preserve key functions to maintain our critical cons

Food and Drug Administration Commissioner Scott Gottlieb warned on Friday that if the partial government shutdown persists, it will force the FDA to make “hard decisions” on preserving key functions of the agency.

The FDA cannot accept any new funding during the shutdown, which entered its 28th day on Friday. That has forced the agency to stretch its remaining funding to last roughly five more weeks. In prepared remarks for delivery at a hearing Friday, Gottlieb said the shutdown has represented one of the “most significant operational challenges” in the FDA’s recent history.

“We’ve had to make hard decisions in the last month to preserve key functions to maintain our critical consumer protection role,” Gottlieb said. “As our user fee programs begin to run out of money, we have many hard decisions ahead of us.”

The timeline for when the agency runs out of funds, which came in part from application fees paid by drug and device makers, could change, the FDA said earlier this week. But the agency added that the change wouldn’t be more than “plus or minus a week.”

Gottlieb said Friday the FDA will maintain its critical safety functions and preserve as much of its review functions as possible. “We are in uncharted territory. This is a watershed moment in the life of this agency,” he added.

The shutdown has left some pharmaceutical companies in the dark regarding the submission of their drug applications with the FDA for potentially life-saving and profitable treatments.

Applications typically take months to review. Any possible delays from the agency could have huge consequences for the balance sheet of drugmakers, especially those who may be scrambling to push new, innovative drugs to the market to stay in business. Delays could also create a backlog for the agency because some drugmakers may be waiting to file applications after the shutdown ends.

The shutdown has already created consequences for one drugmaker, Aimmune Therapeutics, a California-based biotech company that develops treatments for food allergies.

Aimmune submitted an application and transferred the money needed to pay for the review for its experimental immuno-therapy for peanut allergies the day before the shutdown began. But the company disclosed in a regulatory filing this week that the FDA would not start a review for its treatment until the “shutdown and lapse in appropriations” ended.

The world is facing the increased risk of political confrontations between major powers, which is hindering solutions to challenges like climate change and cyberattacks, a new report by the World Economic Forum (WEF) said Wednesday. WEF, best known for creating and facilitating its annual economic forum in Davos, Switzerland, said the breakdown of international cooperation on major issues had reached “crisis levels,” and would continue to prevent international action on urgent crises this year.

The world is facing the increased risk of political confrontations between major powers, which is hindering solutions to challenges like climate change and cyberattacks, a new report by the World Economic Forum (WEF) said Wednesday.

WEF, best known for creating and facilitating its annual economic forum in Davos, Switzerland, said the breakdown of international cooperation on major issues had reached “crisis levels,” and would continue to prevent international action on urgent crises this year.

The WEF report, called the Global Risks Report 2019 and released with risk consultancy Marsh, surveyed around 1,000 experts and decision-makers with 90 percent saying they expected further economic confrontation between major powers. Eighty-eight percent said they expected further erosion of multilateral trading rules.

Huawei CEO Ren Zhengfei praised President Trump’s tax policies Tuesday while speaking in a rare public appearance before international media. Ren continued, saying that actions like “the detention of certain individuals” could have negative effects on U.S.-China relations. U.S. authorities allege that Meng and Huawei violated Iran sanctions and may have made illegal transactions with HSBC. Also,developed markets such as Australia and New Zealand have banned the use of Huawei products to build ne

Huawei CEO Ren Zhengfei praised President Trump’s tax policies Tuesday while speaking in a rare public appearance before international media. But he also hinted the U.S. might be scaring away potential investment through actions like the arrest of his daughter and Huawei’s CFO, Meng Wanzhou.

“For President Trump as a person, I still believe he is a great president in the sense that he was bold to slash taxes,

Ren said. “And I think that’s conducive for the development of industries in the United States.”

Ren continued, saying that actions like “the detention of certain individuals” could have negative effects on U.S.-China relations. Meng was arrested in Canada in December. U.S. authorities allege that Meng and Huawei violated Iran sanctions and may have made illegal transactions with HSBC. Authorities in the U.S. have until the end of January to file an extradition request.

“It’s also important to treat countries with potential investors nicely, so that those investments will come,” Ren said. “If countries or companies are getting frightened… by the detention of certain individuals, and then those potential individuals might be scared away, and that is definitely not in the interest of the United States.”

China is also detaining people, however. Since Meng’s arrest, 13 Canadian citizens have been detained by China, though at least eight have been released, according to Reuters.

Huawei has faced increased scrutiny in the U.S., which has advised consumers against buying Huawei-made phones over concerns they could be used to spy. Also,developed markets such as Australia and New Zealand have banned the use of Huawei products to build new faster 5G networks. Ren denied all allegations that Huawei spies for China and said he would refuse requests from the Chinese government if it asked for Huawei’s user data.

During the briefing, Ren said Huawei “might face challenges and difficulties in international markets,” and said that growth during the next year “would be less than 20 percent.” Another Chinese telecom company, ZTE, faced similar headwinds in 2018, but Ren assured the media that “what has happened to ZTE will not happen to Huawei.”

Shares of Alibaba dipped just before market close Monday following a Wall Street Journal report citing President Michael Evans’ concerns about an economic slowdown in China. “China has slowed down,” Evans said during a presentation at the National Retail Federation’s annual conference, according to the Journal. Evans’ warning comes less than two weeks after Apple CEO Tim Cook cited headwinds in China as the main cause of a rare revenue shortfall for Apple. Alibaba in particular, with its global

Shares of Alibaba dipped just before market close Monday following a Wall Street Journal report citing President Michael Evans’ concerns about an economic slowdown in China.

The stock closed 1.35 percent down after trading up for most of the day.

“China has slowed down,” Evans said during a presentation at the National Retail Federation’s annual conference, according to the Journal. “As a $13 trillion economy, it would be quite unusual if it could continue to grow at 7 percent or 8 percent.”

Evans attributed the pull back in the Chinese economy to “natural causes” as well as ongoing trade tensions with the U.S., the newspaper reported.

Evans’ warning comes less than two weeks after Apple CEO Tim Cook cited headwinds in China as the main cause of a rare revenue shortfall for Apple. The country has emerged as something of a pain point for some of the world’s largest companies.

Alibaba in particular, with its global e-commerce business rooted firmly in both China and the U.S., stands to suffer from continuing trade challenges.

Airline stocks can’t seem to catch a break. Delta reported fourth-quarter earnings on Tuesday that topped analyst estimates, but the stock dropped as much as 2 percent in premarket trading.

The NYSE Arca Airline Index, which tracks U.S. and international carriers, lagged the broader market in 2018 — dropping nearly 21 percent compared with the S&P’s decline of more than 6 percent — and some of the biggest airlines are warning that 2019 might bring more bad news.

American Airlines and Delta Air Lines both finished last week in the red after each carrier cut its guidance. This comes after American Airlines fell just more than 20 percent in December, its worst month on record. It’s plummeted more than 46 percent from its January 2018 high of $59.08.

Some investors may view the move lower as an opportunity for bargain hunting, but BK Asset Management’s Boris Schlossberg believes we haven’t yet seen the worst.

“It may be a value trap because as far as the market is concerned, the only thing they really care about is revenue per available seat mile, and those numbers have been going down,” he said Monday on CNBC’s “Trading Nation,” adding that “fares were down 2.6 percent in December.”

He believes that despite a drop in fuel costs, airlines’ inability to control pricing as well as a potential peak in demand will continue to pressure margins going forward.

He also noted that the partial government shutdown, which reached 25 days on Tuesday and is the longest shutdown on record, isn’t good news for airlines.

“Of course the shutdown is really not helping the airline industry … just the delays themselves are going to have a massive, massive ricochet effect through the whole industry,” he said. On Tuesday, Delta CEO Ed Bastian said the shutdown will cost the airline about $25 million in revenue this month as fewer government contractors and employees are traveling.

Like Schlossberg, Oppenheimer’s Ari Wald wouldn’t be buying airline stocks here. After examining the charts for Delta and United specifically, he isn’t convinced that either one is about to turn a corner or break out to the upside.

That said, he is watching one key level for DAL.

“Big support is $45. This is the multiyear low. We’ve bounced right from there. Positive above there, use that as your protective stop,” he said.

Shares of Delta slid nearly 2 percent Monday after Bank of America cut the name to a neutral rating based on a lack of upcoming positive catalysts. The firm also lowered its price target to $51.

The stock finished the day at $47.75, so it would need to fall another 5.7 percent to reach Wald’s $45 level.

Lawmakers are set to vote on May’s Brexit deal on Tuesday, after she shelved plans for a vote in December when it became clear that not enough lawmakers from her own party or others would back the deal she agreed with Brussels. May looks little closer to securing the support she needs, but writing in the Sunday Express she said lawmakers must not let down the people who voted for Brexit. On Friday, her foreign minister Jeremy Hunt said Brexit might not happen at all if May’s deal was defeated. B

British Prime Minister Theresa May has warned lawmakers that failure to back her plan to leave the European Union would be catastrophic for Britain, in a plea for support two days ahead of a vote in parliament that she is expected to lose.

Lawmakers are set to vote on May’s Brexit deal on Tuesday, after she shelved plans for a vote in December when it became clear that not enough lawmakers from her own party or others would back the deal she agreed with Brussels.

May looks little closer to securing the support she needs, but writing in the Sunday Express she said lawmakers must not let down the people who voted for Brexit.

“Doing so would be a catastrophic and unforgivable breach of trust in our democracy,” May said.

“So my message to Parliament this weekend is simple: it is time to forget the games and do what is right for our country.”

On Friday, her foreign minister Jeremy Hunt said Brexit might not happen at all if May’s deal was defeated.

Britain, the world’s fifth largest economy, is scheduled to quit the European Union on March 29.

The Sunday Times reported that rebel lawmakers were planning to wrest control of the legislative agenda away from May next week with a view to suspending or delaying Brexit, citing a senior government source.

The U.S. is in danger of losing its triple-A sovereign credit rating later this year, Fitch said on Wednesday, warning an ongoing government shutdown could soon start to impact its ability to pass a budget. A stalemate between President Donald Trump and congressional Democrats over a spending package to fund nine government agencies entered its 19th day on Wednesday. It comes at a time when lawmakers are deeply divided over the president’s demand for money for a border wall. So there is a meanin

The U.S. is in danger of losing its triple-A sovereign credit rating later this year, Fitch said on Wednesday, warning an ongoing government shutdown could soon start to impact its ability to pass a budget.

A stalemate between President Donald Trump and congressional Democrats over a spending package to fund nine government agencies entered its 19th day on Wednesday. It comes at a time when lawmakers are deeply divided over the president’s demand for money for a border wall.

“I think people are looking at the CBO (Congressional Budget Office) numbers. If people take the time to look at that you can see debt levels moving higher, you can see the interest burden in the U.S. government moving decidedly higher over the next decade,” James McCormack, Fitch’s global head of sovereign ratings told CNBC’s “Squawk Box Europe” on Wednesday.

“There needs to be some kind of fiscal adjustment to offset that or the deficit itself moves higher and you’re essentially borrowing money to pay interest on the debt. So there is a meaningful fiscal deterioration there, going on the United States,” he added.

Speaking later at an event in London, McCormack continued: “If this shutdown continues to March 1 and the debt ceiling becomes a problem several months later, we may need to start thinking about the policy framework, the inability to pass a budget … And whether all of that is consistent with triple-A.”

“From a rating point of view it is the debt ceiling that is problematic,” he added, according to Reuters.

S&P Global Ratings on Monday stripped California power utility PG&E of its investment-grade credit rating and kept it under review for a further downgrade, citing political and regulatory pressure and uncertainty as it faces massive claims stemming from deadly wildfires. S&P cut the rating on both PG&E and its Pacific Power & Gas Co operating utility to “B” from its previous rating of “BBB-,” the lowest tier of so-called investment-grade ratings. It is searching for new directors at its holding

S&P Global Ratings on Monday stripped California power utility PG&E of its investment-grade credit rating and kept it under review for a further downgrade, citing political and regulatory pressure and uncertainty as it faces massive claims stemming from deadly wildfires.

The utility, whose roughly $18 billion in bonds fell on Monday due to bankruptcy fears, has come under severe pressure since a fatal Camp fire in November compounded the company’s woes. It currently faces billions of dollars in liabilities related to wildfires in 2017 and 2018.

S&P cut the rating on both PG&E and its Pacific Power & Gas Co operating utility to “B” from its previous rating of “BBB-,” the lowest tier of so-called investment-grade ratings.

The ratings agency said it could further cut the company’s rating over the next few months if explicit steps are not taken by authorities to improve the regulatory situation, signaling that the agency may be losing faith that lawmakers could rescue PG&E.

“We could also lower the ratings by one or more notches if management does not clearly articulate specific steps it will take to preserve credit quality over the long term,” S&P said.

Earlier on Monday, PG&E shares dived more than 22 percent and its largest bond, a $3 billion note due in March 2034 with a coupon of 6.05 percent, fell to a record-low bid price of 91.5 cents on the dollar, while its yield rose to nearly 7 percent.

“We expect that negative public sentiment and the increased political pressure will challenge the regulators’ willingness and ability to implement measures to protect credit quality over the near term,” S&P said.

The agency also said it expects PG&E’s capital access may be limited to secured debt issuance, restricting its financing options, because of the increased credit risks, and media speculation on a potential bankruptcy.

On Friday, sources told Reuters that PG&E was exploring filing for bankruptcy protection. The company was considering the move, for some or all of its businesses, as it fears a massive charge in the fourth quarter related to potential liabilities from wildfires.

The company said it was reviewing its “structural options” and assessing its operations, finances, management, structure and governance. It is searching for new directors at its holding company and its utility unit Pacific Gas and Electric Co.

In November, PG&E said it could face “significant liability” in excess of its insurance coverage if its equipment was found to have caused last year’s fires in northern California.

The fires near the Northern California mountain community of Paradise swept through the town, killing at least 86 people in the deadliest and most destructive wildfire in the state’s history. PG&E had reported equipment problems near the origin of the fire around the time it began.

Credit ratings for PG&E and its Pacific Gas & Electric unit were downgraded by the three main ratings agencies in mid-November.

Last month, the California Public Utilities Commission opened a proceeding to consider penalties against the company, ordering immediate action against the utility for falsifying safety documents for natural gas pipelines.

In his new book, “Tell Your Children,” Berenson argues the case, citing research from the National Academy of Medicine. Morgan Fox, a spokesman for the National Cannabis Industry Association, downplayed Berenson’s research in a statement emailed to CNBC. “So far, there is nothing to suggest that cannabis consumption causes mental illness, though some research suggests that it may exacerbate pre-existing conditions,” Fox said. Canada has had legal medical marijuana since 2001, which led to a burg

Alex Berenson, former New York Times investigative reporter turned author, says he wants to sound the alarm about research into marijuana and mental illness at a time when many states are legalizing or thinking about legalizing cannabis for medical and recreational use.

In his new book, “Tell Your Children,” Berenson argues the case, citing research from the National Academy of Medicine. On page 289 of the NAM’s 2017 report, “The Health Effects of Cannabis and Cannabinoids,” the nonprofit group concluded there is a risk. “Cannabis use is likely to increase the risk of developing schizophrenia and other psychoses; the higher the use, the greater the risk,” wrote the NAM, which advises the U.S. government on health issues.

Berenson told CNBC on Tuesday the NAM “did a 500-page report that says basically that nearly all the medical benefits are either unproven or don’t exist, and there’s a true link to psychosis and schizophrenia, which are terrible diseases.”

Morgan Fox, a spokesman for the National Cannabis Industry Association, downplayed Berenson’s research in a statement emailed to CNBC.

“The connection between cannabis consumption and mental illness is tenuous at best, and the fact that we don’t know more about it is just another reason to change policy so that it can be more easily researched,” he said.

“So far, there is nothing to suggest that cannabis consumption causes mental illness, though some research suggests that it may exacerbate pre-existing conditions,” Fox said. “There are tens of millions of regular cannabis consumers in the United States, and if it was truly a contributing factor to mental illness, we would be seeing widespread negative effects, and we simply are not seeing that.”

Supporters of legal cannabis, known by many names including marijuana, can point to a number of other studies advocating for the medical uses of the plant’s compounds such as the psychoactive THC for nausea and CBD, which doesn’t get users high, for pain relief. The U.S. government’s National Institute on Drug Abuse lists some of the science around the benefits, even though cannabis remains illegal at the federal level.

However, 10 states and Washington, D.C., have already legalized recreational use of pot. Another 23 states and D.C. have legalized marijuana for medical use. Last year, some 20 states considered legalizing adult, recreational use of cannabis, according to the National Conference of State Legislatures research group.

In October, Canada became the largest country in the world with a national, legal marijuana marketplace. Canada has had legal medical marijuana since 2001, which led to a burgeoning cannabis industry north of the U.S. border. Canadian pot companies, many of which are now publicly traded stocks, have been positioning themselves for possible, broader legalization in other countries.

“Good luck with that,” Berenson said, arguing the pot industry is going to feel the wrath “the first time there’s a case, a really bad case of psychosis” that’s blamed on marijuana use.

Berenson credits his wife, a forensic psychologist, for motivating him to write the book. “[She] said to me, ‘I see so much cases of crimes where the person was using at the time, using for years, had become psychotic, have become schizophrenic. And I didn’t really believe her. I think a lot of people don’t believe this if you haven’t done the work, done the research.”

Americans don’t seem to be listening. According to a Pew Research poll in October, 62 percent of respondents say the use of marijuana should be legalized. That’s double those favoring it in 2000.